Escrow & Title

When a buyer purchases real property in Oregon using a trust deed as security, the 'reconveyance deed' is recorded when:

AThe buyer makes the first mortgage payment
BThe loan is paid off in full, returning title from the trustee to the borrower✓ Correct
CThe property is sold to a new buyer
DThe lender assigns the loan to a new servicer

Explanation

When a deed of trust loan is fully paid off, the trustee executes a reconveyance deed (also called a deed of reconveyance) that transfers the legal title that was held by the trustee back to the borrower (trustor). This clears the lien from the public record.

Related Oregon Escrow & Title Questions

Practice More Oregon Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Oregon Quiz →